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The Banker's discount on a bill due 6 mo...

The Banker's discount on a bill due 6 months hence at 16% per annum is Rs. 216. The true discount is :

A

Rs. 212

B

Rs. 180

C

Rs 210

D

Rs. 200

Text Solution

AI Generated Solution

The correct Answer is:
To find the true discount given the banker's discount, we can use the formula: \[ \text{True Discount} = \frac{\text{Banker's Discount} \times 100}{100 + \text{Rate} \times \text{Time}} \] ### Step-by-Step Solution: 1. **Identify the given values:** - Banker's Discount (BD) = Rs. 216 - Rate (R) = 16% per annum - Time (T) = 6 months = 0.5 years (since 6 months is half a year) **Hint:** Convert months into years for the calculation. 2. **Calculate the effective rate for the time period:** - The effective rate for 6 months at 16% per annum is: \[ \text{Effective Rate} = R \times T = 16\% \times 0.5 = 8\% \] **Hint:** Remember to convert the percentage into a decimal when performing calculations. 3. **Substitute the values into the formula:** \[ \text{True Discount} = \frac{216 \times 100}{100 + 8} \] **Hint:** Ensure you add the effective rate correctly to 100. 4. **Calculate the denominator:** \[ 100 + 8 = 108 \] **Hint:** Double-check your addition to avoid simple errors. 5. **Calculate the True Discount:** \[ \text{True Discount} = \frac{21600}{108} \] **Hint:** You can simplify the division by breaking it down or using a calculator. 6. **Perform the division:** \[ \text{True Discount} = 200 \] **Hint:** Make sure your division is accurate to ensure the final answer is correct. ### Final Answer: The true discount is Rs. 200.
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